A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange interest payments on a specific notional amount of money at a predetermined future date.
A clause in a loan agreement or bank facility stating that the loan will become repayable if there is a material change in the borrower's credit standing. The clause can be contentious because it is not always clear what constitutes a material change.
Finance professionals often use the Sterling Overnight Index Average (SONIA) as the benchmark interest rate for loans and financial contracts denominated in pounds sterling. Discover its definition, application, and influence on global finance.
